9That information also shows that:— the HIPA is not a general tax, levied throughout the national territory, but a local tax, the introduction, repeal and amendment of which is subject to the discretion of the local authorities;— in the municipalities where it has been introduced, it is applied to every economic activity carried out on a permanent or temporary basis in the territory of the municipality concerned, the taxable person being the undertaking;— the basis of assessment, in the case of an economic activity of a permanent nature, is the net turnover corresponding to the goods sold or the services provided during a given period, less the purchase price of the goods sold, the value of the intermediary services and the costs of the materials;— in the case of sole traders and small agricultural producers, the basis of assessment is the standard-rate taxable amount determined in accordance with the Act on tax on the income of private individuals, plus 20%;— in the case of undertakings subject to simplified business tax (egyszerűsített vállalkozói adó), the basis of assessment of the HIPA may correspond to 50% of the simplified business tax;— the local authority which has introduced the HIPA may grant reductions or other fiscal advantages, entitlement to which, however, is restricted to undertakings whose basis of assessment does not exceed HUF 2.5 million, or a lower amount fixed by that authority;— a special fiscal advantage is envisaged in the event of an increase in the number of employees during the fiscal year (a reduction of the taxable amount by HUF 1 million per person employed);— in the case of an economic activity carried out on a permanent basis, the maximum annual rate of the HIPA is fixed at 2%;— taxable persons are not required to state the amount of the HIPA expressly on invoices or accounting documents; the Act of 1990 does not include any provision setting out the possibility of deducting the HIPA which may be included in the price of goods or services acquired by the taxable person;— the Act of 1990 does not expressly provide that the HIPA can be passed on to the consumer, but that tax may be included in the price paid by the consumer;— in addition to the HIPA, in Hungary there is also a value added tax (általános forgalmi adó), governed by Act LXXIV of 1992.
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